In a Twist few would have Predicted, JPMorgan, One of Wall Street’s most Vocal Crypto Sskeptics, is now forecasting a Rebound in Digital Assets. The Bank remains Optimistic about Crypto Markets in 2026, expecting Renewed Growth driven Primarily by Institutional Inflows and Greater U.S. Regulatory Clarity. Despite a Recent Market Downturn that pushed Bitcoin (BTC) below its Estimated Production Cost, the Bank views the Weakness as Temporary. It now estimates Bitcoin’s Production Cost at about $77,000, noting that Sustained Trading below that Level, could Force Higher cost Miners offline, ultimately Lowering Production Costs and helping Stabilize Prices.
The Bank also Argues that BTC’s Long-Term Appeal has Improved relative to Dold, which has Out Performed BTC since October 2025, but seen Rising Volatility. JPMorgan expects Institutional Investors, rather than Retail Traders, to Lead the next Wave of Digital Asset Inflows, Potentially supported by New U.S. Legislation such as the proposed Clarity Act. Robinhood’s announcement that it intends to Launch its own Blockchain, Robinhood Chain, is being seen as a Pivotal moment in the Evolution of Fintech Infrastructure. The Company is No longer Content to simply Offer Access to Crypto Assets; it now seeks to Own the Rails on which those Assets move. The Strategic question embedded in this Decision is Larger than Robinhood itself. In the Emerging Digital Financial system, is it better to build a Proprietary Chain or to Operate on an Existing Public One?
Robinhood’s move places it in the Camp of Firms that have chosen Vertical integration. The most Prominent example is Coinbase, which launched Base as an Ethereum Layer 2 Network. Base is Not an entirely Independent Chain; it inherits Security from Ethereum while allowing Coinbase to Control User Experience, Ffee Mechanics, and Integration within its broader Ecosystem. The Logic is clear. By Operating Base, Coinbase captures additional Economic Value across the Stack, from Transaction Fees to Ecosystem Growth, while also Ensuring that on Chain Functionality Integrates Seamlessly with its Consumer App.
Exchanges such as Binance have followed a similar Playbook. Binance’s BNB Chain created a Parallel Ecosystem in which Decentralized Finance Applications, Token Issuance, and Digital Asset activity could Flourish under Binance’s Influence. These Examples suggest that Companies with Large Retail User bases seeSstrategic Value in Controlling not Only the Interface Layer but also the Infrastructure Layer.
Robinhood likely views its own chain through a similar lens. First, infrastructure control reduces dependency. Public blockchains such as Ethereum are governed by decentralized communities and are subject to congestion, fee volatility, and governance decisions outside any single company’s authority. For a publicly listed brokerage operating under strict regulatory scrutiny, unpredictability in settlement infrastructure is not ideal. A proprietary chain allows Robinhood to engineer transaction throughput, fee structures, and compliance features to align with its business model.
Second, there is an Economic Incentive. Zero commission Trading has compressed Margins across Retail Prokerage. Infrastructure Ownership introduces New potential Revenue Streams. Transaction Fees, Validator Economics, Token Issuance services, and Ecosystem Incentives can all accrue to the Chain Operator. In a Competitive Fintech Environment, Expanding beyond Brokerage into Infrastructure may provide Long Term Margin Expansion.
Third, Compliance Considerations are Central. Robinhood operates within a tightly Regulated Framework. Public Chains are Open Systems characterized by Pseudonymous participation and Global Jurisdictional Complexity. A Purpose Built Chain can embed Identity Layers, Reporting Standards, and Governance Structures that Align more comfortably with Regulatory Expectations. This does Not necessarily imply Full Permissioning, but it does enable a more Managed Environment.
Yet not All Large Financial Institutions are choosing to Build. BlackRock launched its Tokenized Fund BUIDL on Ethereum rather than on a Proprietary Chain. PayPal introduced its PYUSD Stablecoin on Ethereum and later Solana, embracing Public Networks for Distribution and Liquidity. Visa has Expanded Stablecoin Settlement Operations using Public Chains as Infrastructure. Franklin Templeton has similarly Tokenized money Market Funds on established Public Networks.
The Logic behind this Alternative Strategy emphasizes Composability and Network effects. Public Chains host Vast Developer Ecosystems, Deep Liquidity Pools, and broad User participation. By building on Ethereum or another established Network, Companies immediately gain access to existing Infrastructure, Tooling, and Market Participants. They Avoid the Burden of attracting Developers to a New Chain and Sidestep the reputational Challenges associated with Launching a Network Perceived as too Centralized.
This Tension between Control and Composability Defines the Strategic choice. Proprietary Chains offer Integration, Revenue Capture, and Regulatory Customization. Public Chains offer Distribution, Credibility, and Network Effects.
Which Strategy is likely to Prevail? The Answer may Not be Binary. Hybrid Models appear increasingly Common. Base, for example, is Built Atop Ethereum, combining Coinbase’s Control over the User, Layer with Ethereum’s Security and Ecosystem Depth. Such Layered Architectures allow Companies to Capture Economic Upside, while Remaining Anchored to Established Public Infrastructure.
In the Long Run, Pure Isolation may prove Challenging. Financial Markets Thrive on Liquidity and Interoperability. A Chain that is too Closed Risks Limited Developer Engagement and Constrained Capital Inflows. Conversely, Firms that rely Entirely on Public Metworks may Sacrifice Differentiation and Economic Capture.
The likely Outcome is Convergence. Large Consumer Platforms such as Robinhood may build Proprietary Chains that Remain Interoperable with Public Ecosystems. Institutional Asset Managers may continue to Prefer Public Chains for Transparency and Global Reach. Over Time, the Distinction between “building your own chain” and “building on a public chain” may Blur as Modular Blockchain Architectures allow Firms to Customize Layers without Abandoning Shared Settlement Infrastructure.
NYC Wins When Everyone Can Vote! Michael H. Drucker
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